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6.1 B - Attachment No. 4
<br /> NOTE 6—GOVERNMENTAL ACTIVITIES LONG-TE�DEBT
<br /> A. Description
<br /> Redwood City has no outstanding general obligation bonds. One improvement district has been formed
<br /> within the City limits for specific improvements within the boundaries of the district. General
<br /> Improvement District bonds (GID 1-64 reclamation and facilities bonds) are limited general obligations
<br /> of Redwood City confined to the district boundary and was fully paid in fiscal year 2008/09. The
<br /> following is the list of long-term obligations of the City.
<br /> Revenue Bonds•
<br /> 1998 Lease Revenue Refunding Bonds - In July 1998, the City issued $12,160,000 of bonds to refund
<br /> $10,995,000 of the 1991 Public Financing Authority bonds. Principal is due in annual installments of
<br /> $695,000 to $1,670,000, with total principal and interest remaining on the bonds in the amount of
<br /> $4,121,875 through July 15, 2011. Bonds are payable out of the 1998 Lease Revenue Refunding Bonds
<br /> debt service fund out of lease payment revenue received from the general fund, and annual principal and
<br /> interest payments are expected to require less than 10 percent of net revenues.
<br /> 1998 City Hall Lease Revenue Certificates of Participation - In October 1998, the City issued
<br /> $11,700,000 of variable rate demand certificates to provide permanent funding for the new City Hall
<br /> project that was completed in August 1997. Principal and estimated interest payments totaling
<br /> $10,974,359 through July 1, 2021 will be made out of the 1998 City Hall Lease Revenue Certificates of
<br /> Participation debt service fund from transfers in from the general fund, requiring less than 10 percent of
<br /> net revenues. The variable rate is calculated weekly and fluctuates according to market conditions,but is
<br /> capped at 12%. The average monthly interest paid in fiscal year 2008/09 was $9,386 and the interest rate
<br /> in effect at June 30,2009 was 0.33%.
<br /> 2003 Public Financing Authority Bonds—In December 2003, the City issued $11,475,000 of bonds to
<br /> refund $6,725,000 of the 1991 Public Finance Authority bonds and to provide $4,390,000 for new
<br /> projects. Principal is due in annual installments of$670,000 to$940,000,with total principal and interest
<br /> remaining on the bonds in the amount of$9,497,706 through July 15, 2018, payable out of the Public
<br /> Financing Authority Bonds debt service fund out of lease payment revenue received from the general
<br /> fund, requiring less than 10 percent of net revenues. The refunding resulted in an increase in total debt
<br /> service payments of$441,654 and an economic gain of$415,987.
<br /> General Improvement District Bonds:
<br /> General Improvement District No. 1-64 Facilities Series Bonds are due in annual installments of
<br /> $26,500 to $1,350,000 through July l, 2008; original amount$18,515,000 issued in 1966 for utility lines
<br /> and infrastructure improvements in the Redwood Shores area. Debt service payments were made from
<br /> the GID 1-64 Facilities Bonds debt service fund out of special assessment revenue. The bonds were fully
<br /> paid in fiscal year 2008/09.
<br /> General Improvement District No. 1-64 Land Reclamation Series Bonds are due in annual
<br /> installments of$300,000 to $510,000 through July 1, 2008; original amount $9,510,000 issued in 1966
<br /> for land reclamation in the Redwood Shores area. Debt service payments were made from the GID 1-64
<br /> Reclamation Bonds debt service fund out of special assessment revenue. The bonds were fully paid in
<br /> fiscal year 2008/09.
<br /> Tax Increment Bonds:
<br /> 1997 Tax Allocation Refunding Bonds issued in July 1997 by the Redwood City Redevelopment
<br /> Agency to prepay a loan received by the Agency from the Redwood City Public Financing Authority.
<br /> Original amount of$15,430,000 is due in annual installments of$417,805 to$1,525,880,with total
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